Chapter 7 The Firm. Business Firm. Employs factors of production Produces goods and services Sells to consumers, other firms, or the government We work for and buy from firms. Market. Two sides Buyers Utility is major decision making device Sellers How do they make decisions.
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In-class exercise #9Using the knowledge
In –class exercise 10 Does MPP show Diminishing Returns???
In-class exercise 11
How do we calculate these costs??
Give two ways to get to the cost…
Tying Products to Costs
A CLOSER LOOK
When MC is below
Production in the
short run: at
least one fixed input
When MC is above
In-class exercise 12
Do we understand Chapter 8??